Gold prices have increased in global markets. On Monday (24 November), the price rose by one percent based on expectations that the Federal Reserve will cut interest rates.
The report states that at 1:43 PM local time, the price of spot gold increased by 1.2 percent, reaching $4,111.86 per ounce. Additionally, the price of U.S. gold futures for December rose by 0.4 percent to settle at $4,094.2 per ounce.
Bart Melek, Head of Commodity Strategy at TD Securities, said that market confidence is growing that the U.S. Federal Reserve is heading towards an interest rate cut in December.
On Monday, the CME FedWatch Tool showed that there is a 79 percent probability of an interest rate cut in September.
Melek added, “We are waiting for the data, and it is expected that inflation may not be too high. All of these factors suggest an upward trend in gold prices.”
StoneX analyst Rona O’Connell stated, “The debate over the Fed’s interest rate cuts and especially the changing geopolitical environment related to Ukraine could further help drive up gold prices. However, in our view, it will remain limited between $4,000 and $4,100 per ounce.”
The report also mentions that spot silver increased by 1.7 percent to reach $50.84 per ounce, while platinum rose by 2.3 percent to $1,545.91 per ounce.
Source: Reuters
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